The resignation of Robin Whitbread, Somerfield Group’s buying and marketing director and MD of Kwik Save, has sparked City speculation that he believed he was being sidelined.
“I suspect he became disillusioned when he did not get the chief executive role at Somerfield and now that Kwik Save is being pared down he feels increasingly marginalised at the group,” said one analyst.
Another suggested that the scaling down of operations must have had a part to play in Whitbread’s departure.
“Did he quit or was he pushed?” he asked.
Whitbread’s exit comes after Somerfield’s acquisition of 114
Safeway Compact stores from Morrisons.
The multiple is reopening its East Kilbride distribution centre to help handle the demand created by the acquisition. The
centre had served Kwik Save and there were plans to phase it out after Somerfield announced it was to scrap the format in Scotland. Chief executive Steve Back said: “The centre will reopen to provide the extra capacity needed now. We will review its use in 12 months.”
Somerfield said the acquisition could add between £750m and £800m to annual sales. It includes a 205,000 sq ft fresh and chilled distribution centre at Welwyn Garden City, which will cover Somerfield stores across south-east England, cutting transport costs.
Back said: “The centre comes with its own logistics provider and transport team and will begin serving Somerfield stores from January.”
Retail director Mike Lucas will manage store integration while Richard Smith, integration director, will liaise between Safeway and Somerfield teams. Back added: “These stores have missed Safeway promotional support for some time and missed the price cuts Morrisons applied to other Safeway stores because it always meant to divest them.
“We can now begin replacing Safeway own label with our offer and introducing promotions and price-tiering.”
Following Whitbread’s departure, Katie Bickerstaffe becomes Somerfield Group retail director with responsibility for Kwik Save retail operations in addition to her current role as director of Somerfield stores and retail services.
David Cheyne, group finance chief, will head group buying until a director is appointed.
Rod Addy

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